Next Wave sells two multifamily properties in Utah and Texas
Salt Lake City —Next Wave Investors, LLC (“Next Wave”) a private equity firm focused on value-add multifamily investments, recently completed two dispositions: Shiloh Park Townhomes, a 73-unit multifamily community in Plano, Texas, which the firm acquired in December of 2020; and Townhomes at Mountain Ridge, a 63-unit multifamily community in Salt Lake City, Utah, initially acquired in May of 2019.
These transactions demonstrate the firm’s ability to strategically identify opportunities in high-growth markets and efficiently implement value-add renovations for multifamily assets, according to Jordan Fisher, Principal at Next Wave.
“We were drawn to these assets as opportunities to acquire underappreciated multifamily properties in markets with some of the country’s highest rates of job growth, especially in the technology sector,” explains Fisher. “Further, the townhome-style communities meet the increasing resident demand for spacious layouts, on-site amenities, and easy access to retail, restaurant, and entertainment experiences, coupled with the serenity of suburban residential neighborhoods.”
Details of these transactions are below:
Townhomes at Mountain Ridge, Salt Lake City, Utah
Next Wave sold Townhomes at Mountain Ridge in Salt Lake City for a 50.7 percent increase over the firm’s original purchase price after a 3-year hold, during which the team implemented significant value-add renovations both to increase curb appeal as well as interior renovations of each individual unit, according to Fisher.
“Even before the onset of the pandemic and exponential growth in those working from home, we recognized an increased demand for townhome-style communities with spacious layouts,” says Fisher. “This trend in multifamily communities, coupled with our strategic upgrades, allowed our firm to sell the asset for a significant return to investors.”
Further, Utah ranked second in the nation for population increases last year, with in-migration acting as a significant driver of growth in the state and the Salt Lake City metro in particular—prompting high demand for up-to-date housing communities.
Fisher adds: “As of March of this year, Utah’s employment has increased an estimated 4% compared to the previous year, with the state’s economy providing approximately 62,900 jobs since March of 2021. This not only speaks to Utah’s well-endowed employment landscape, but to its salience in recapturing the job market post-covid—faster than many other states.”
According to David Sloan, Principal at Next Wave, this promising submarket also has a median age of 32, making it an increasingly competitive destination for young professionals who might be looking to rent for several more years.
Sloan adds: “Attractive job opportunities are enticing younger generations, many of whom are from coastal states with highly educated backgrounds, to the state of Utah. These young professionals value its gorgeous natural landscape, strong infrastructure, and robust local economy. The relative affordability of the area with its high quality of life is also bringing prominent firms like Goldman Sachs to the area as well as tech giants like Microsoft, Facebook, and Adobe, bolstering Salt Lake City’s reputation as the Silicon Slopes.”
Townhomes at Mountain Ridge is located at 3570 S 300 E in Salt Lake City, Utah.
Shiloh Park Townhomes, Plano, Texas
Next Wave sold Shiloh Park Townhomes in Plano, Texas for a 38.8 percent increase over the initial purchase price after holding the property just 18 months, according to Fisher.
“The community of Shiloh Park Townhomes features spacious floorplans averaging approximately 1,700 square feet, which we identified as well aligned with long-term renter demand as young professionals continue to seek larger spaces to accommodate working from home, entertaining at home, and demands for a total lifestyle community,” says Fisher. “We recognized an opportunity to further enhance the appeal of the townhome asset through a series of upgrades, including exterior improvements and an interior renovation program to modernize units.”
Sloan adds that Plano has emerged as a top spot for technology job growth. Additionally, the submarket has been deemed a top housing spot in North Texas as the Dallas-Fort Worth area continues to grow as an epicenter for development. Job growth is expected to outperform the national average by more than 11 percent over the next decade.
“As an experienced multifamily owner-operator in high-growth markets throughout the west, we acquired the townhome community not only with confidence in our value-add renovation plan, but also with a strategic anticipation of future market growth,” explains Sloan. “Plano continues to see an influx of employers and residents as it benefits from a reputation as one of the safest, most family-friendly submarkets in the Dallas-Fort Worth area.”
In addition to Utah and Texas, Next Wave continues its strategic deal-making and expansion into other western submarkets including Portland, Dallas, Las Vegas, Spokane, and Phoenix, among others, adds Sloan.
About Next Wave Investors, LLC
Next Wave Investors, LLC (“Next Wave”) is a Southern California-based private equity investment firm with a specialized focus in value-add multifamily investments throughout the Western United States. With more than $500 million in acquisitions to date, Next Wave is exceptionally skilled in identifying well-located, underappreciated properties where value can be created through professional operations and capital improvements. Drawing upon an 18-year track record and hands-on experience in the ownership, operation, enhancement, and in-house management of multifamily properties, the firm consistently delivers for its investors. More information is available at www.nextwaveinvestors.com.